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The Commission has finalised its review of the Retailer Feed-In Tariff
which electricity retailers must, under the provisions of the Electricity Act
1996, pay to solar photovoltaic residential and small business electricity
customers whose solar photovoltaic generators feed electricity into the
distribution network.

The Commission has today released its final decision in respect of the
minimum retailer feed-in tariff payable by electricity retailers to customers
with solar photovoltaic units.

The Commission’s final determination is that it will make a further one-year
price determination setting the minimum retailer feed-in tariff at 7.6c/kWh
(reducing it from the current level of 9.8c/kWh). The minimum amount fixed by
the Commission is at the lower end of the reasonable range of fair and
reasonable value to an electricity retailer of electricity fed-in to the
distribution network. From 1 January 2014, all electricity retailers are
required to pay at least that minimum retailer feed-in tariff amount to PV
customers for electricity exported into the distribution network, although they
may offer higher amounts.

Further, the Final Price Determination provides a mechanism that would reduce
the minimum retailer feed-in tariff to 6.0 cents/kWh in the event that the
carbon price is removed.

From 1 January 2014, a formal price-monitoring regime will also be
implemented to monitor the extent of competition for PV customers and the
incidence of payments above the mandatory minimum retailer feed-in tariff value
over the next regulatory period. Evidence provided through that process will
inform the Commission’s subsequent decision as to whether to continue to set a
minimum retailer feed-in tariff.

Further Info

Repeal of carbon price: impact on minimum Retailer Feed-in
Tariff

24 Jul 2014

The Parliament of Australia has repealed the Clean Energy Act 2011,
which abolishes the carbon price, effective from 1 July 2014. The 2014
minimum Retailer Feed-In Tariff (R-FiT) price
determination incorporated a mechanism to allow the minimum R-FiT
payment amount to be varied in the event of the carbon price being removed.

As this has now occurred, the carbon price component of that minimum
R-FiT payment amount will no longer apply from 1 July 2014. From 1 July the
minimum R-FiT payment amount will be 6.0 cents/kWh (it was 7.6
cents/kWh for the period that there was a carbon price)

All customers that export energy from qualifying solar photovoltaic (PV)
generators are now entitled to receive at least 6.0 cents/kWh from 1 July 2014
until 31 December 2014. The Commission will be conducting a review of the R-FiT
to apply from 1 January 2015 in the coming months.

The minimum R-FiT does not mean that electricity retailers are
required to set the R-FiT at 6.0 cents/kWh – retailers can, and are encouraged
to, offer payments above that amount.

South Australian consumers should compare offers from electricity retailers
to ensure they have an energy contract that best suits their needs. The
Australian Energy Regulator operates a free energy price comparison service
(available online at www.energymadeeasy.gov.au or by
calling 1300 585 165) that allows consumers to compare offers from electricity
retailers in South Australia.

All documents associated with the Commission’s review of the 2014 R-FiT may
be accessed from the Commission’s website (www.escosa.sa.gov.au).